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Ordinance No. 876OPf 1 ORDINANCE NO. 876 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS AMENDING SECTION 26 -23, "IMPOSITION -- GENERALLY" OF THE CODE OF THE CITY OF CYPRESS RELATIVE TO THE TRANSIENT OCCUPANCY TAX RATE; AND ADDING SECTION 26 -28.1, "COST OF AUDITS" TO THE CODE OF THE CITY OF CYPRESS THE CITY COUNCIL OF THE CITY OF CYPRESS DOES ORDAIN AS FOLLOWS: SECTION I. Section 26 -23, "Imposition -- Generally" of the Code of the City of Cypress is hereby amended to read as follows: "Sec. 26 -23. Imposition -- Generally. For the privilege of occupancy in any hotel /motel, each transient is subject to and shall pay a tax in the amount of ten percent (10 %) of the rent actually charged or customarily charged by the operator for the room and /or facilities occupied by the transient. Such tax constitutes a debt owed by the transient to the City which is extinguished only by the payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel /motel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in hotel /motel. If for any reason the tax due is not paid to the operator of the hotel /motel, the Director of Finance may require that such tax shall be paid directly to the Director of Finance." SECTION II. Section 26 -28.1, "Cost of Audits," is hereby added to the Code of the City of Cypress to read as follows: "Sec. 26 -28.1 Cost of Audits. Should the tax administrator be required to perform an audit of the records of any operator in order to ascertain the facts and information pursuant to Section 26 -28 hereof to determine the proper amount of any tax owed pursuant to this Chapter, the entire cost of said audit shall be assessed against the operator. In the event that the books and /or records required to perform an audit are not made -1- 0 available within the City of Cypress, the assessment shall include the cost of transportation, lodging, meals, and portal -to- portal travel time. Said assessment shall be due and payable not more than thirty (30) days after written notice of said assessment is sent, by certified mail, return receipt requested, to the operator. Should the operator fail to pay said assessment within the thirty (30) day time limit, said assessment shall constitute a lien against the property for which the audit was performed. After confirmation of said assessment lien by the City Council, the City assessor and tax collector shall be notified, and shall add the amount of the assessment lien to the next regular tax bill levied against said property for municipal purposes." SECTION III. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases or portions thereof be declared invalid or unconstitutional. SECTION IV. The City Clerk is hereby authorized and directed to certify as to the passage of this Ordinance and to give notice thereof by causing copies of this Ordinance to be posted in three public places throughout the City. FIRST READ at a regular meeting of the City Council of said City held on the 28th day of October 1991 and finally adopted and order posted at a regular meeting held on the 12th day of November 1991. ATTEST: .' CfT' CLERK OF THF/CITY OF CYPRESS MAYOR OF THE ITY OF CYPRESS -2- 0.8 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss I, DARRELL ESSEX, City Clerk of the City of Cypress, California DO HEREBY CERTIFY that the foregoing Ordinance was duly adopted at a regular meeting of the City Council of the City of Cypress, held on the 12th day of November , 1991, by the following roll call vote: AYES: 5 COUNCIL MEMBERS: Age, Kerry, Nicholson, Partin and Bowman NOES: 0 COUNCIL MEMBERS: None ABSTAINED: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None CITY CLERK OF THE C. Y OF CYPRESS